Oh, The Humanity! Saudi Aramco Only Made $88 Billion In Profits In 2019, Down From $111 Billion

Saudi Aramco, the world’s largest oil company, said on Sunday that its profit last year fell more than 20 percent, primarily because of lower oil prices. Still, Aramco, the national oil producer of Saudi Arabia, remains one of the world’s most profitable companies, earning a net income of $88.2 billion in 2019. A year before, it earned $111.1 billion.

The announcement comes as 2020 is shaping up as a miserable year for the oil industry. Crude prices have nearly halved as demand plummeted because of the spreading coronavirus epidemic. A standoff between Saudi Arabia and Russia on production limits has worsened the situation. Lower prices will most likely put further pressure on Aramco’s performance this year.

Brent crude, the international benchmark, now sells for about $33.25 a barrel, and some analysts say they believe it will dip lower as Russia and members of the Organization of the Petroleum Exporting Countries increase production while demand for oil sinks.

Saudi Aramco’s stock on Riyadh’s Tadawul exchange has been trading below 32 riyals (about $8.50) per share, the opening price in its initial public offering in December. On Sunday, the share price was about 28.70 riyals.